Summary.
The draft bill amends Article 241 of the consolidated text of Chapter 11, Title VII, Book Two of the Criminal Code. The proposed provision addresses two forms of conduct related to Social Security: withholding employee and employer contributions without remitting them to the Social Security Fund, and evading or preventing the enrollment of persons required to enroll. It establishes a different prison term for each form of conduct. It also provides for an increased penalty when certain persons order contributions to be withheld rather than remitted.
Regarding contributions, the proposed article penalizes anyone who withholds them and fails to remit them to the Social Security Fund within 2 months after the obligation to pay arises, provided they exceed 1,000 balboas (B/.1,000.00). The same provision covers anyone whom the Fund has required to release the withheld contributions. The prescribed penalty for this conduct is 3 to 5 years’ imprisonment. The amendment thus links the violation to the payment obligation, the withholding of contributions, the failure to remit them, and the Fund’s demand, on the terms set out in the article.
The proposed Article 241 also penalizes employers, their representatives, and other persons subject to the obligation who evade or otherwise prevent the enrollment in Social Security of persons required to enroll. For this conduct, the text identifies deceptive statements, malicious concealment, or any other scheme as means of doing so. The prescribed penalty is 4 to 6 years’ imprisonment. This part of the amendment concerns enrollment and actions intended to evade or prevent it, while the preceding provision concerns withheld contributions and their remittance to the Social Security Fund.
The provision also proposes increasing the penalty by one-sixth to one-third for an employer, legal representative, or anyone who, in one way or another, orders a manager, administrator, or accountant to withhold the remittance of contributions. The increase relates to the order to withhold that remittance and applies to the persons identified in the provision. Art. 2 provides that the proposed law would take effect 6 months after its promulgation.
The draft bill concerns the Social Security Fund, the application of the Criminal Code, and enrollment in Social Security. Given the conduct it regulates, it could be of interest to or affect employers, legal representatives, managers, administrators, accountants, other persons subject to the obligation, and persons required to enroll.
What it proposes.
- Withholding and failure to remit employee and employer contributions.
- Evasion or prevention of mandatory enrollment in Social Security.
- Prison terms and an increased penalty for ordering contributions to be withheld rather than remitted.
Who it would affect.
- Persons who withhold and fail to remit employee and employer contributions.
- Employers, representatives, and other persons subject to enrollment obligations.
- Persons who order a manager, administrator, or accountant to withhold the remittance of contributions.
- Persons required to enroll in Social Security.
Key points.
- Proposes amending Article 241 of the Criminal Code.Art. 1
- Provides for 3 to 5 years’ imprisonment for withholding and failing to remit employee and employer contributions to the Social Security Fund within 2 months after the obligation to pay arises, when the contributions exceed 1,000 balboas (B/.1,000.00).Art. 1
- The same penalty applies to anyone whom the Social Security Fund has required to release the withheld contributions.Art. 1
- Provides for 4 to 6 years’ imprisonment for employers, their representatives, and other persons subject to the obligation who, through deception, malicious concealment, or another scheme, evade or prevent mandatory enrollment in Social Security.Art. 1
- Increases the penalty by one-sixth to one-third for an employer, legal representative, or anyone who orders a manager, administrator, or accountant to withhold the remittance of contributions.Art. 1
- Provides that the proposed law would take effect 6 months after its promulgation.Art. 2